Spotting Winners: Lattice Semiconductor (NASDAQ:LSCC) And Processors and Graphics Chips Stocks In Q4
The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how processors and graphics chips stocks fared in Q4, starting with Lattice Semiconductor (NASDAQ:LSCC).
The biggest demand drivers for processors (CPUs) and graphics chips at the moment are secular trends related to 5G and Internet of Things, autonomous driving, and high performance computing in the data center space, specifically around AI and machine learning. Like all semiconductor companies, digital chip makers exhibit a degree of cyclicality, driven by supply and demand imbalances and exposure to PC and Smartphone product cycles.
The 8 processors and graphics chips stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2.4% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
Slowest Q4: Lattice Semiconductor (NASDAQ:LSCC)
A global leader in its category, Lattice Semiconductor (NASDAQ:LSCC) is a semiconductor designer specializing in customer-programmable chips that enhance CPU performance for intensive tasks such as machine learning.
Lattice Semiconductor reported revenues of $117.4 million, down 31.2% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ adjusted operating income and EPS estimates.
"We achieved record design wins, significantly reduced operating expenses, and delivered a strong 31.8% adjusted EBITDA margin in 2024,” said Ford Tamer, Chief Executive Officer.
Lattice Semiconductor Total Revenue
Lattice Semiconductor delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 12.8% since reporting and currently trades at $61.38.
Having been at the forefront of developing the standards for cellular connectivity for over four decades, Qualcomm (NASDAQ:QCOM) is a leading innovator and a fabless manufacturer of wireless technology chips used in smartphones, autos and internet of things appliances.
Qualcomm reported revenues of $11.67 billion, up 17.5% year on year, outperforming analysts’ expectations by 6.7%. The business had an exceptional quarter with a significant improvement in its inventory levels and a solid beat of analysts’ EPS estimates.
Qualcomm Total Revenue
Qualcomm pulled off the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 11.1% since reporting. It currently trades at $156.44.
Founded in 1993 by Jensen Huang and two former Sun Microsystems engineers, Nvidia (NASDAQ:NVDA) is a leading fabless designer of chips used in gaming, PCs, data centers, automotive, and a variety of end markets.
Nvidia reported revenues of $39.33 billion, up 77.9% year on year, exceeding analysts’ expectations by 2.5%. Still, it was a mixed quarter as it posted revenue guidance for next quarter slightly missing analysts’ expectations.
As expected, the stock is down 11.8% since the results and currently trades at $116.05.
Founded in 1969 by a group of former Fairchild semiconductor executives led by Jerry Sanders, Advanced Micro Devices (NASDAQ:AMD) is one of the leading designers of computer processors and graphics chips used in PCs and data centers.
AMD reported revenues of $7.66 billion, up 24.2% year on year. This number beat analysts’ expectations by 1.5%. However, it was a mixed quarter as it failed to impress in some other areas of the business.
The stock is down 13% since reporting and currently trades at $104.05.
The result of a spinoff from Sanken in Japan, Allegro MicroSystems (NASDAQ:ALGM) is a designer of power management chips and distance sensors used in electric vehicles and data centers.
Allegro MicroSystems reported revenues of $177.9 million, down 30.2% year on year. This print topped analysts’ expectations by 1.4%. It was a strong quarter as it also recorded a solid beat of analysts’ EPS estimates and a decent beat of analysts’ adjusted operating income estimates.
The stock is up 14.7% since reporting and currently trades at $26.22.
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